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INDONESIA: Domestic and Overseas E-Commerce Transactions Set for New Tax

All of the country’s e-commerce transactions, including those conducted via overseas digital service providers, are set to be taxed under new Finance Ministry regulations. It is expected, however, that the new levy will be lower than the VAT rate of 10% now applied to all offline transactions.

While the move underlines Indonesia’s commitment to regularise the tax status of e commerce transactions, it is unclear how the compliance of non-Indonesian businesses will be secured. Despite this uncertainty, this new legislation is expected to be formally adopted before the end of the month.

Content provided by Picture: HKTDC Research
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